The pound strengthened to a nine- month high against the euro as concern the region’s debt crisis will worsen boosted demand for the relative safety of the U.K. currency.
Sterling reversed a gain versus the dollar and gilts pared a decline. Fitch Ratings yesterday joined Moody’s Investors Service and Standard & Poor’s in warning it may cut the credit ratings of euro-area nations.
The pound climbed 0.5 percent to 84.19 pence per euro at 4:06 p.m. London time, the strongest since Feb. 22. It fell 0.4 percent to $1.5515 after climbing 0.3 percent.
Ten-year gilt yields climbed four basis points to 2.14 percent, while two-year yields added two basis points to 0.38 percent.
The FTSE 100 index of shares jumped 1.1 percent and the Stoxx 600 rose 0.5 percent.
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